Crystal Ball Predictions for 2017 - Katy and Houston TX

Praful Thakkar real estate agent with Keller Williams in Andover MA created an Active Rain Challenge for January 2017 asking for a post of 2017 real estate market predictions. My main market area is Katy TX with secondary being Far West or North Katy/Cypress areas. I will discuss Katy in greater detail but I mention both Cypress and Houston.

I will start with a comment there is no implied or express warranty of anything included in this post. These are strictly my own market predictions made on January 30, 2017. Nothing more and nothing less. There is NO such thing as a guarantee in Real Estate. I have had potential clients tell me about other agents who were supposedly guaranteeing certain results. I do not partake in this type of nonsense.

Katy TX market is made up of South Katy which is south of I-10; North Katy which is north of I-10 and Old or Historic Katy and I include areas which are all zoned to attend Katy ISD schools for my distinction. My comments will exclude Old or Historic Katy as it is a unique market and probably could easily command a detailed analysis of its own. .

I believe 2017 will find especially in the first half of the year that units or homes sold in South Katy will continue to decrease and prices will remain flat or will show slight declines. There is only a 2.6 month supply of inventory in MLS area 36 or South Katy which continues to soften the impact of lower demand. Depending on Interest rates, energy prices and energy employers reactions to their markets, the second half of 2017 I believe will see a more robust market in this area. Some older neighborhoods which have not been maintained very well will show price decreases and reduction in demand for resale homes.

North Katy or homes in MLS area 25 zoned to Katy ISD schools will I think continue to have a very vibrant market during all of 2017. Demand and prices will continue to rise throughout the year of 2017. Generally, prices in this area are lower than in South Katy or MLS area 36. There are also more new homes being built in this area and a major new development named Elyson will have a full year in 2017 to contribute its sales to the stats. Inventory of affordable family homes is certainly larger than in MLS area 36.

Cypress TX zoned to Cypress Fairbanks ISD as part of MLS area 25 will also I believe experience a vibrant and active market during 2017 with homes sold and prices increasing by more than single digits. Towne Lake which was the Greater Houston Homes Builders Association Community of the year in 2016 will lead the way once again. Most of this neighborhood falls into MLS area 25. If you are waiting for prices to decrease in Towne Lake or in most of MLS area 25 you will be left at the starting gate.

The Houston market set an all time record for home sales of 76,449 homes sold in 2016 which is 1.3 % above the previous record year of 2014. This in spite of the huge negative impact falling energy prices have had on the local economy. Depending on the neighborhoods, I believe 2017 will continue to see a rise in homes sold with corresponding fairly significant price increases. The Heights, West University, Montrose and Bellaire will continue to be very active markets as has occurred for the last several years in these areas. I observe the Houston overall market from a distance as it is too large to even consider trying to be proficient and knowledgeable about the entire market.